SIGNALS™ provides detailed information on the regulations and activities of the US Federal Maritime Commission (FMC), and related developments in the ocean freight industry. For past issues, please consult our index.

The Federal Maritime Commission (FMC) has appointed Mr. Benjamin K. Trogdon as Director of the Commission’s Bureau of Enforcement (BOE). Mr. Trogdon joined the FMC in July 2000 and most recently served as a Trial Attorney in BOE. He replaced Mr. Brian L. Troiano, who retired last month. The Bureau of Enforcement (BOE) is the prosecutorial arm of the Commission; its attorneys participate as trial counsel in formal Commission proceedings and work closely with the Commission’s Area Representatives in investigations of potential violations of the Shipping Act and Commission regulations. Bureau attorneys also negotiate settlements and informal compromises of civil penalties.

“The Bureau of Enforcement is one of the key line activities of the Federal Maritime Commission. Mr. Troiano was a strong leader of the BOE team. We appreciate and value his dedicated service to the Commission and the shipping public and wish him well in his retirement. I have full confidence that Mr. Trogdon will be a very effective leader and manager of the Bureau as it works to ensure competition and integrity for America’s ocean supply chain,” said FMC’s Managing Director, Ms. Karen Gregory.

During his tenure at the FMC, Mr. Trogdon has also served as an Attorney-Advisor in the Office of the General Counsel. Prior to joining the Commission, Mr. Trogdon served as a maritime attorney in private practice. He earned his Bachelor of Arts degree from the University of North Carolina and a Juris Doctorate degree from the Vermont Law School.

The Federal Maritime Commission (FMC) announced its Commissioners met in closed session on September 4, 2018 to review FMC Fact Finding Investigation No. 28. This is a formal investigation headed by Commissioner Rebecca Dye focused on the practices of vessel operating common carriers and marine terminal operators related to detention, demurrage, and per diem charges.

FMC Fact Finding Investigation No. 28 was initiated in March 2018. An interim report of findings and recommendations was due on September 2, 2018, but this report is confidential to the Commission. A final report is due on December 2, 2018. Final reports in other Fact Finding Investigations (FFI) have been made public. For example, in 2011, the FMC made public its report in FFI No. 27, which focused on Potentially Unlawful, Unfair or Deceptive Ocean Transportation Practices Related to the Movement of Household Goods. This report provided several recommendations to the Commission staff.

This investigation of detention and demurrage practices was prompted by Petition P4-16, which was submitted by the Coalition for Fair Port Practices in December 2016 and has generated many comments. In January 2018, the Commission held two days of hearings on issues raised in this petition by soliciting testimony from shippers, ocean transportation intermediaries, ocean carriers, truckers, and marine terminal operators.

Some carriers updated their respective tariffs to include new General Rate Increases (GRIs) effective September 15, 2018, including APL, CMA CGM, COSCO, Evergreen, Hapag Lloyd, Hyundai Merchant, Ocean Network Express, and Yang Ming. See tables below for GRI amounts per 40ft container; GRI amounts for all other container sizes are as per formula.

TSA EASTBOUND (Asia to USA)

GENERAL RATE INCREASE (GRI)
Effective September 15, 2018

Carrier

in USD, per 40ft ctr

APL

1000

CMA CGM

1000

COSCO (see note 1)

800

Evergreen

1000

Hapag Lloyd

700

Hyundai

1000

ONE

1000

Yang Ming

1000

The following carriers updated their respective tariffs to include new General Rate Increases (GRIs) effective October 1, 2018. Details are as follows:

TRANSPACIFIC EASTBOUND (Asia to USA)

GENERAL RATE INCREASE (GRI)
Effective October 1, 2018

Carrier

in USD, per 40ft ctr

APL

1000

CMA CGM

1000

COSCO (see note 1)

800

Evergreen

1000

Hapag Lloyd

700

Hyundai

1000

ONE

1000

Yang Ming

1000

Note 1: COSCO GRIs apply on all cargo moving under service contracts only.

Several carriers serving the USA/East Asia trade lanes (U.S. Exports) have adjusted their fuel surcharges for the October to December 2018 quarter. Here is a table of carriers that have posted updates to fuel surcharges (bunker adjustment factors) in their FMC tariffs:

TRANSPACIFIC WESTBOUND (USA to Asia)

BUNKER ADJUSTMENT FACTOR (BAF), Oct – Dec 2018, in USD, per 40ft ctr

Carrier

Dry Cargo

Reefer Cargo

From US Atlantic/Gulf Coast Ports

From US Pacific Coast Ports

From US Atlantic/Gulf Coast Ports

From US Pacific Coast Ports

APL

1044

565

1365

775

CMA CGM (see note 2)

266

266

266

266

Evergreen (see note 2)

376

190

1002

535

Hapag Lloyd (see note 2)

1051

566

1304

723

ONE (see note 2)

1078

565

1414

775

OOCL (see note 2)

1078

565

1417

775

Yang Ming (see notes 1 & 2)

1044

565

1365

775

Note 1: Yang Ming calls the above Bunker surcharge the New Bunker Charge (NBC). Yang Ming also filed an Emergency Bunker Surcharge (EBS) in its FMC tariff. Rates which are subject to the above NBC are exempt from the EBS.

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The information contained herein is obtained from reliable sources. It is subject to change at any time, however, depending on changes in laws and regulations. While we continually attempt to monitor this information, we do not guarantee its accuracy and are not responsible for any damages suffered by any party in reliance on it.